—_—_ es uUnitising the packad | ? roducts commodities can 43, Many Pa or unitised to raclitate handing F alle Is awe economically eer protection of cargo. stowage 2" upalletising” is the assembly of one or more packages ona pallet (platform, usually wooden) base anq ed toit. properly secult »ynitising’ |S the assembling of one or more packages or ite i mpact load, secured together and provided with skids for easy handling. These methods have following advantages - (i) They eliminate the multiple handling of individual items. (ii) They speedup Joading and unloading operations. (iii) They compel greater use of mechanical handling reducing possible damage from multiple manual handling. (iv) They facilitate applicati Pplications of ; ¢ for the entire load. waterproofing protection They redu inci ice the incidence of lost or straying items: (vi) Speedy loadi : Ing and di improved "Turn pee ee operations lead © dues for the ae of ships and savings in dock 66; The concept of unit carriad® isi increasingly becoming a COMM” igser stUCY transportation and therefore deserves ° © Pallets- 44. Packages are fastened to @ eee Secured to it through the transit. The platform "pallet" and is lifted into and out of the shiP ee ‘ unit. This facilitates loading and discharge oper causing considerable reduction in delay: 2°" fitted with rollers for ease in movement. Fork li used for moving the pallets in the dock areas an ship’s hold {ions, d within @ Liftvan 45. Where cargo has to be handled package by package, railways suffer delays and long lines of wagons stand idle whilst awaiting loading and discharge. A system was therefore developed to speed up the “turn around” of wagons. The system comprised of constructing vans in two separate parts - the whole of the container unit to detachable from the chassis, and by standardisation, to be readily usable on any other chassis. The van part was called a “liftvan" and the chassis was called a “flat’. An extension of the system allowed the liftvans to be placed on road transport flats. 46. Although the liftvan could also be loaded directly on to the ship from the flat, the holds are not designed to take the liftvans. So the lift vans have to be stowed on deck. A further difficulty is that the vans are not designed to be 67asthe rout is curved as in a stan, hy i whilst the liftvans are still Use iiway wagor- coastal voyages, their main Use jg ral o i ad. infrequently Fs ji transit BY rail or road ; an confined to I" al stacked over each Container transport ation ‘¢ a wider application of th The use of intermodal containers for fa variety Of cargoes has Cee increasingly | transport a nt years. Intermodal transport involves rapid cominon ee sportof standard cargo containers by seq ae, air. It has reduced cargo handling particularly in 47. Containers concept of unitisatiou. _____Beer-te-Door shipments ——_— aa 48. "Containers" in this context mean large boxes of regulated sizes, constructed of strong light-weight metal, specifically designed for carriage by custom- built cellular container ships. A fully laden container ship will normally — include one or two tiers of container cargo "on deck". 49. Containers vary in size and in designs according tothe requirements. of the container operators and shippers. =e Generally accepted standard sizes by the SO (International Standard Organisation) are : § 0F8.5 feet hi by 8 f i or 20 030 or 40 feet long, gh by 8 feet wide and 10 The main s expressed as TEY ( Such containers 4j tandard used is 20 feet in tengtt Twenty Foot Container Equivalent ut t into the Specially constructed holt 68_———e-—-—Orll—™e most conventional container ve: s i of z sels as well as inthe holds ater rail oF ships and c: ani table transP toad haulage, @ placed on a sult 50. For the purpose of shipping: the contents of a ieeeahan are described as Full Container Load oe es Saal “container load (LCL). FCL implies a full oa gle shipper. LCL js the term used for @ smaller consignment co ; to _ Nsol i her ex! riers fill the container. idated with goods or ot Pp contai take ie . Pee who plans to despatch a full load can loading by an empty container at his own premises for a'singleeonc ane leeeeene then intended for delivery t is sossibica eae the ideal of door-to-door transportation premi » |.e. from the consignor’s to the consignee’s ises without breakdown of contents. : 52. If, however, the shipper chooses to use the packing services of an outside freight forwarder, 2 groupage depot or a container packing station or if the contents are to be distributed to various consignee after the container arrives at the destination container terminal, an element of conventional transportation at both the shipping and destination ends cannot be avoided. Therefore, all LCLs begin and end their transit by conventional conveyances- An undemvriter should always inquire in this aspect rating should reflect which of these alternatives will apply - that is, whether FECL or LCL and whether door-to-door oF conventional handling and delivery. 69Containerisation in India 53. In India, advanced container handling facilities exis, in major ports like Mumbai, Chennai, Kochi, Haldia ang Calcutta. Jawaharlal Nehru port at Nava Sheva off Mumbai has one of the most automated container termina management system inthe world. Facilities for bulk cargoes and containers are very well planned. The port has three container berths, 2 bulk carrier berths and one repair berth, 54. Door-to-door concept has not yet caught on in India anda large number of containers are meant to be destutfeq and stuffed in the port. For that purpose, extensive shed space facilities exist. In this country containerisation will remain for sometime to come a form of "unitisation between ports", that is, a port-to-port service. This is because inland movement is almost in the form of break - bulk. 55. It must therefore be accepted - and this is very important - that containerisation does not do away with the need for adequate cargo protection. In other words, it should not be assumed that the container is a substitute for adequate packing or for proper stowage or handling. Maximum export packing standards are required when shipping containers port-to-port. 56. Inmany countries there are packaging consultants. These consultants design specialised containers for all types of goods. They also advise on the elimination of loss and damage and devise methods for the safe transit of goods. In india, we have the Indian Institute of Packing at Mumbai to assist a shipper on packing. 70i ish ae ith hs telat Fe nga established mai ee Bene through the initiative of Indian Ral®™ a 4 ong a lore, Coimbatore, Guntur, Ludhian Hees ate s ee for serving the shippers and ae ierent parts of India inland” 57. I Inland Container Depots (1CD) Advantages and disadvantages — es Acontaineris essentially a ship's h . The cargo stored in a container is sub) oI stress and strain and damage hazards while at S@ cargoes shipped in break-bulk method. Hence the same Principles and techniques which gover export packing and cargo storage of break - bulk shipments are equally valid when preparing cargo for container shipment ancien stuffing it in a container. f container usage has now ages always arrive hance the risk of 59. Sufficient knowledge © been accumulated to realise that disadvant with advantages. Containerisation may en damage as well as reduce such risks. Advantages = Quick and efficient carriage of cargo (especially when door-to-door ) by custom- built container vessels between custom - built container terminals. - Multiple handling is minimised or eliminated, particularly for FCLs and door - to -door containers. Theft and pilferage risks are reduced though not entirely eliminated. 7\dividual packing contents. This dog, ¢ Indian conditions e ly to present pabeNer, saa a Beaton isprimanily 2 method of unitisation ren ue rt, resulting in break-bulk handling after the rainet arrives at the destination port. Superior ©xport Cc acking theretore becomes indispensadle even fo, Pp containerised cargo. Economies in in Protection against external contract damage. Protection against sea and/or fresh water damage. r protection against fire risk as A container is a bette 292 fre vi well as-againstwater damage during fire extinguishing operations. = Reduced risk of misdelivery- Disadvantages 5 A carrier may decide to stow a container on deck. Containers shipped to the deck are exposed to the elements and to the risk of being washed overboard in — severe qweather. In practice , the difficulty is” compounded when frequently the shipper is not aware that deck stowage has taken place. There are problems of container maintenance, when inadequate inspections for condition may leave damaged containers in service, thus negating the potential benefits and exposing the contents to watel damage in particular. iener load The co: “ Neentration of values ina single conta! t target of con for thi sumer goods has become a convemen ic ves and hijackers. Ina ; ; nica or defective ventilation may increase the Of sweat damage and condensation. See shipments may encourage a lowe? standard oi individual packing of contents and this could spell disaster particularly when LCL containerload is involved and transit is not door-to-door. Incomplete filling of a container or defective Se may allow excessive free movement of GatiteTiS transit resulting in self damage- A large variation in weight where containers are stowed on deck can effect stability and unevenly weighted containers can cause problems for the driver of a truck during inland transit. Bulky goods cannot be reasonably carried economically in containers. Difficulties in stuffing arise where one, OF perhaps two, large items occupy a container leaving much space in the container unused. Contamination risks, if incompatible cargo is stowed in the same container. Also there is the risk of contamination by residual material or eaeureninon previous cargo. Transhipment problems, when a container is damaged 73in transit and another container is not available, Damage to the contents of a container temain concealed until arrival at final destination. So, no remedial measures can be taken during the voyage o, transit. 2 Most container vessels do noua on board titing equipment, and loading and discharge are done by gantry or jib crane equipment located on the dockside, Inthe event ofa major casualty at sea, Say, a stranding or collision, cargo can only be moved by specially equipped salvage vessels or floating cranes, if at all x hey become available intime soon’ after the mishap. — Also, following a serious casualty, structural distortions can make the removal of containers impossible. INSURANCE OF CONTAINERS conene aie insured subject to Institute Container Clauses (1.1.1987), the scope of which is as follows - Risks covered 60. - All risks of loss or damage, provided there is a fortuity and provided the risk is not expressly included. General average and salvage charges incurred to avoid a loss from any cause except those excluded. Machinery :- There is a liability for loss/damage to the 74———ooe”—s—Cas—stss machinery of a container only under following circumstances: (a) When the container is a total loss (actual or Constructive) 2 : (b) When such damage is. caused by : fire or explosion originating externally to the machine; vessel or craft being stranded, grounded, capsized Or sunk; ov mi i i | erturning, derailment or other accidenis to land conveyance or aircraft; Collision or contact of vessel or craft with any external object other than water; - general average sacrifices. Exclusions 61. - Wilful misconduct of the assured. - Ordinary wear and tear, ordinary corrosion and rust or gradual deterioration of the containers. Mysterious disappearances, unexplained loss. i vice or nature of the subject matter - Inheren insured.Pp . roximately caused by delay even if such del -y is Caused by an insured peril. Atising from insolvency or financial default. - Unseaworthiness or unfitness of the vessel or craft or conveyance, where the assured or their servants are privy. - War, strikes or nuclear weapon exclusion. Limits clause 62. Each containeris covered, including whilst on deck, \ within the sea and territorial limits specified in the Schedule of the policy. Breach of these limits is held covered ata premium to be agreed and subject to prompt notice to the insurer. Sale or hire 63. If the insured container(s) is sold leased or hired to a party not named as the assured, the insurance in the ——container-shalt terminate automatically, unless the insurer — agrees in writing to continue the cover. Claims - Claims for damage to a container, which is not a total loss, shall not exceed reasonable cost of repairing such damage.The deduct of aac Under the policy shall apply in respect accidents eo any one accident or series of Not apply to te from one event. The deductible shall ‘SRY Salvage im al loss ( actual or constructive ), charges salvage charges and sue and labour The insurer for more ¢ 'Nsurance oe Not be liable for unrepaired damage ; an the insured value at the time the ‘erminates, nor for unrepaired damage in the event Of subsequent ; : the policy, q otal loss during the period of Schedule 65. The’ schedule of the policy shows the following details :- clause: The It is a condition of the insurance that each container bears clear-and distinct marks of identification. Type of container and value. Sea and territorial limits. Names of the overseas vessels which will carry these containers. Deductible. ne insurance ig subject to the usual Sue and Labour a insurance may be cancelled by either party giving 30 days’ notice: ilaConclusion 66. In the early days of containerisation, shippers expected underwriters hopefully to reduce rates fo, containerised goods on the grounds that such Carriage must reduce claims. Regrettably, this expectation did not materialise. Apart from losses, often heavy, recovery prospects from the carriers became difficult. In such situation the underwriter prefers to charge possibly higher rates and leave the experience to show whether a reduction in rate is justified. In any event, containerisation will continue to expand, but it will never be all pervasive and it is unlikely it will come up totally to the ideal and the perfections expected of it intheory i CONDITIONS OF INSURANCE 67. Rating should take into consideration each material element of the risk involved, whether itbe the characteristics of a given vessel carrying the goods or the voyage or the nature of cargo and packing. These characteristics vary considerably from risk to risk. For e.g, a proposal to ship heavy machinery of acement plant on deck ratherthan under deck will highlight the risk of washing overboard in heavy whether. 68. Under ICC (B) cover, thisis a material factor which must be included in rating because the tisk is covered, but under ICC(C)-where "Washing Overboard" is not specitically covered and may be considered as covered only if reasonadly attributable to one of the several major named perils- This factor will be of far less significance. 78consumer electronic Il be a major factor to it would be an f either ICC ani 69. Likewise, ina consignment of eae the risk of theft and pilferage W/! ude in the rating under ICC (A), wheieas ! immaterial fi 6 ee rcoverag (B) or (cy, tor under the narrowe (appiian oneven there is one common area of risk Major perils on all the three sets of clauses), namely, the Posea Uniform Me Cargo is exposed during transit which Perils ang Casu Aes to all interests on board. These are tite explosion, venaine Covered under ICC (C)-namely, fire, Capsized, ora are being stranded, grounded, sunk or Ng or derailment of land conveyance, etc. - which im ort ‘ Clauses. ee lie at the base of all Institute Cargo tisks, an ins Of the Catastrophic nature of these basic u i é te rer will seek to set aside an appropriate ©ach premium ag a reserve for "Catastrophe Order to mitigat " E ; fe the underwriting account 9 severity of the strain on his Proportion Funds" in 71. It follows therefore that every premium should Necessarily include in the rate calculation, a provision for ICC (C) risks, ie. forthe basic cover. Each progressive stage of rating for the widening scope of cover should then supplement that base, so as to produce finally a composite rate which adequately takes into consideration all the material components of the risks. 72. Aninteresting feature of ICC (B) and (C) covers is the "Impersonal" nature of the risks covered, i.e, risks which are closely related to the process of transit itself and which are largely beyond the control of the assured. 7973. At the ICC (A), 1-@ "ll risks" stage, “persona)" influences get highlighted as several extraneous perils are also covered over and above the basic and major perils of ICC (B) and (C). This personal influence relates to the shipper, the manner in which his goods are prepared and packed for shipment, his choice of carriers, etc. These Bie additional considerations which an underwriter has totake ipte) account when rating a risk under icc (A) and these considerations contribute materially to the ultimate underwriting results. 74. The other underwriting considerations are < e It is important to keep regular statistics-clientwise, according to the nature, ofthe commodity, type of loss, etc. Statistics provide a specific and logical base to underwriting and assist in monitoring the trend of an account and in exercising control over our underwriting policy. Renewal of open covers and open policies should be based on what the past experience reveals. - Watch commitments (sum insured) for specific voyages/transits SO that acceptances do not exceed the underwriting limits. Where any risk is beyond the prescribed underwriting limits, acceptance should not be confirmed unless a reference is first made to the Marine Cargo Technical Department at the H.O. and is approved by it. Rates for wars and strikes risks and other extras should be quoted separately from Marine premium rates. Last, but not the least, is the MORAL HAZARD factor, and this aspect of an insurance account should not be 80————————— Eras is the attitude of the assured towards to find the pean No insurer minds Me client trying they have eicaneet cover, but some stients feel that cover the ee if they do not have sufficient claims to insurance isto of that insurance. The purpose of are Selling, Bese protection-that is what insurers protection, sere assured, having bought at insurance mana poeeou cost and not feel that his end of the ae is failing him in his job, if, at the claims do not a ere have been no claims or if the underwriter isto coed the premium. The aim of the in the relation pad a reasonable margin of profit affordable loss mi eee premium, taking into account of recovery from ey measures and prospects carriers and bailees. 81